Asia’s diesel physical markets were slightly more upbeat on the trading window, with the emergence of a deal for the first time in two weeks, while October spot refiner sales remained underway.

At least two regional northeast Asian refiners were in the midst of discussing for October cargoes, with most looking to sell at premiums amid hopeful forward market expectations.

The front-month diesel east-west price spreads hovered at discounts of more than $40 per metric ton, little changed from last Friday.

Refining margins slipped to its lowest in nearly two weeks of $18.5 a barrel.

Cash differentials gained to nearly $1 a barrel, erasing some of previous session gains as paper market structure backwardation turned steeper and buyers on window were firm.

For jet fuel, Indonesia’s Pertamina closed a tender at noon for 600,000 barrels of October delivery imports.

Regrade narrowed slightly to discounts of $1.8 a barrel to reflect the weaker gasoil paper markets in comparison to jet fuel.

SINGAPORE CASH DEALS

– One gasoil deal, no jet fuel deal

NEWS

– Russian-backed Indian refiner Nayara Energy is seeking Indian government help to source equipment and materials needed for maintenance as European Union sanctions make it difficult to secure key items, three people familiar with the matter said.

– Italiana Petroli’s founding family is nearing the sale of the oil refiner to State Oil Company of Azerbaijan (SOCAR) in a deal that would hand the group control of one of Italy’s largest petrol station networks, three sources said.

– Ukraine launched a large attack with at least 361 drones targeting Russia overnight, sparking a brief fire at the vast Kirishi oil refinery in Russia’s northwest, Russian officials said on Sunday, reporting no injuries.

– Oil prices edged higher on Monday as investors assessed the impact of Ukrainian drone attacks on Russian refineries, while U.S. President Donald Trump said he was prepared to impose sanctions on Russia if NATO nations stop buying Russian oil.
Source: Reuters